Spouse inherits and inherited IRA
My client just inherited an inherited IRA from her spouse, who originally inherited it from his father. I have two questions:
1. How should she title the account now?
2. Does she have to continue to take RMDs?
My client just inherited an inherited IRA from her spouse, who originally inherited it from his father. I have two questions:
1. How should she title the account now?
2. Does she have to continue to take RMDs?
Permalink Submitted by Alan - IRA critic on Fri, 2017-01-27 19:01
Title should be “(client) as beneficiary of (spouse)” – the father’s name is no longer required. Client must continue the RMD schedule of her spouse, reducing the divisor by 1.0 for each successive year. The account remains an inherited IRA and cannot be made her own IRA, nor can she contribute to it. However, she should name her own successor beneficiary who would also have to continue the same RMD schedule.